Official Gramps' Memorial Eternal OT Thread

#41,932
#41,932
Just a little "this day in American history" tidbit, today marks the anniversary of Patrick Henry's historical "I know not what course others may take; but as for me, give me liberty, or give me death!" . It was given in 1775, in front of the Second Virginia Convention, in Richmond, VA.

Just a historical reminder of when men fought for their liberties, instead of slowly surrendering them as we're doing in today's world.
 
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#41,933
#41,933
Weezer said:
Just a little "this day in American history" tidbit, today marks the anniversary of Patrick Henry's historical "I know not what course others may take; but as for me, give me liberty, or give me death!" . It was given in 1775, in front of the Second Virginia Convention, in Richmond, VA.

Just a historical reminder of when men fought for their liberties, instead of slowly surrendering them as we're doing in today's world.
Click to expand...
Truth.
 
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#41,943
#41,943
Orangeburst said:
Actually there is something rather bizarre going on in the world right now in regards to logistics. We received some feedback from one of our main vendors about the leadtimes for product on the West coast.
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I'm still waiting on some catalyst I ordered from a producer in Germany in October of last year. They wanted to hold half of it to ship in January because they had already exceeded their forecast for 2020 (reminds me of the games my former employer would play)... and I said SURE because I didn't expect to need it before April, and generally 60 days is enough to go from their plant to my warehouse with an LTC shipment (less than container load). Well guess what? Here we are almost 90 days later and the boat is just now reaching NYC; from there, down the east coast and eventually to the Port of Houston where my container will come off it, and at this rate it will be mid-April before I see my product... Voyage booking was handled by DHL Global Forwarding... seems that's about the best we can expect right now.
 
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#41,944
#41,944
RavinDave said:
I'm still waiting on some catalyst I ordered from a producer in Germany in October of last year. They wanted to hold half of it to ship in January because they had already exceeded their forecast for 2020 (reminds me of the games my former employer would play)... and I said SURE because I didn't expect to need it before April, and generally 60 days is enough to go from their plant to my warehouse with an LTC shipment (less than container load). Well guess what? Here we are almost 90 days later and the boat is just now reaching NYC; from there, down the east coast and eventually to the Port of Houston where my container will come off it, and at this rate it will be mid-April before I see my product... Voyage booking was handled by DHL Global Forwarding... seems that's about the best we can expect right now.
Click to expand...

I am seeing past typical 4 week L/T becoming 9-12 weeks. It is a huge issue and building for past 2 months. Not like we are peak COVID right now
 
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#41,945
#41,945
Orangeburst said:
I am seeing typical 4 week L/T becoming 9-12 weeks. It is a huge issue and building for past 2 months. Not like we are peak COVID right now
Click to expand...
Is this for only overseas sourced stuff? Is it mostly in the logistics or do the manufacturing plants have longer lead times too?
 
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#41,946
#41,946

Where are all the containers?

So where have the containers gone? Many are in inland depots. Others are piled up in cargo ports, and the rest are onboard vessels, especially on transpacific lines. The largest container shortage is in Asia, but Europe also faces a deficit.

To grasp why the containers are where they are, it’s important to first understand the domino effect that has led to the present situation. Let’s start at the beginning.



Pandemic wave creates North American bottleneck

As the pandemic spread out from its Asian epicentre, countries implemented lockdowns, halting economic movements and production. Many factories closed temporarily, causing large numbers of containers to be stopped at ports. To stabilize costs and the erosion of ocean rates, carriers reduced the number of vessels out at sea. Not only did this put the brakes on import and export, it also meant empty containers were not picked up. This was especially significant for Asian traders, who couldn't retrieve empty containers from North America.

Then, a unique scenario developed. Asia, being the first hit by the pandemic, was also the first to recover. So while China resumed exports earlier than the rest of the world, other nations were (and still are) dealing with restrictions, a reduced workforce and minimal production.
 
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#41,947
#41,947
RavinDave said:
Is this for only overseas sourced stuff? Is it mostly in the logistics or do the manufacturing plants have longer lead times too?
Click to expand...

China component sourcing for US assembly. Affecting anything from China for our competitors as well. A part here or there for an assembly of thousands of parts. Just not adding up.
 
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#41,948
#41,948
Orangeburst said:
But why? Some international game?
Click to expand...

I believe the root cause is a severe trade imbalance between Asia and the west, since their economies opened up quicker. Nobody wants to send a container back empty, so there are fewer in Asia to send over. Freight rates have also close to tripled.
 
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#41,949
#41,949
RavinDave said:
Where are all the containers?

So where have the containers gone? Many are in inland depots. Others are piled up in cargo ports, and the rest are onboard vessels, especially on transpacific lines. The largest container shortage is in Asia, but Europe also faces a deficit.

To grasp why the containers are where they are, it’s important to first understand the domino effect that has led to the present situation. Let’s start at the beginning.



Pandemic wave creates North American bottleneck

As the pandemic spread out from its Asian epicentre, countries implemented lockdowns, halting economic movements and production. Many factories closed temporarily, causing large numbers of containers to be stopped at ports. To stabilize costs and the erosion of ocean rates, carriers reduced the number of vessels out at sea. Not only did this put the brakes on import and export, it also meant empty containers were not picked up. This was especially significant for Asian traders, who couldn't retrieve empty containers from North America.

Then, a unique scenario developed. Asia, being the first hit by the pandemic, was also the first to recover. So while China resumed exports earlier than the rest of the world, other nations were (and still are) dealing with restrictions, a reduced workforce and minimal production.
Click to expand...

A freakin metal box...sorry, but my ass
 
#41,950
#41,950
DC_Vol said:
I believe the root cause is a severe trade imbalance between Asia and the west, since their economies opened up quicker. Nobody wants to send a container back empty, so there are fewer in Asia to send over. Freight rates have also close to tripled.
Click to expand...
Air freight costs have skyrocketed as well.

Couple years ago I could fly a couple pallets of catalyst from Italy or Germany for $2-3 a pound but now it's more like $10 a pound.
 
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